COVID-19 National: Business, Non-Profits – Australian Banking Association Small Business Relief Package

This program aims to support businesses or not-for-profits that have been adversely impacted by COVID-19 by allowing them to defer principal and interest repayments for all bank loans attached to them for a period of six months.

While the business (including not-profits) won’t make any principal or interest payments for the six months, interest will continue to be accrued, it can then be paid off over the life of the loan once repayments begin again, or the length of the loan can be extended. This is a discussion that should be had between the business and their bank.

The bank will ask customers to self-assess whether their business (or not-for-profit) has been adversely impacted, no further verification will be required. In order to participate customers must advise their bank that their business (or not-for-profit) is affected by COVID-19, they will fast track the approval process and provide support as soon as possible.

Participating banks are also offering loans, including overdrafts, at very low interest rates, to help bridge cash flow gaps, supported by the Government, through an SME Loan guarantee.

Businesses with total business loan facilities of up to $10 million (up from the $3 million small business threshold) will also be able to defer business loan repayments for six months.

Eligible applicants must:
- Have less than $10 million total debt to all credit providers.
- Need to be current, and not in arrears as of 1 January 2020.

It does not matter how many people the business employs. Some banks are applying these criteria flexibly. Applicants who fall outside these criteria are advised to contact their bank to discuss their situation.